The FHA 203k Mortgage
The FHA 203k mortgage is popular today because of the large number of homes on the market that need improvements due to foreclosures in the past. The FHA 203k mortgage program allows homeowners to set aside money when buying a house and allows them to:
- Buy a property and have money set aside for repairs / renovations
- Buy a house on one site, then move the house to another foundation and repair/renovate it
- Refinance another loan and set money aside for repairs or renovations
- Repair or renovate a property that you currently own
With the existence of the FHA 203k loan, there is no need for a short term construction loan when you want to finance home improvements. The FHA 203k loan can be a 30 year fixed rate (or adjustable) FHA loan that can cover both the purchase price of the property as well as the rehabilitation costs associated with renovation and improvements.
FHA 203K Tips
Here are just a few simple tips that can help you when considering an FHA 203k (or FHA 203k streamline) loan:
- Choose a Realtor who knows about the FHA 203k program. The two most important things to getting the most possible equity out of your 203k project are choosing the right Realtor and choosing the right property. An experienced Realtor who is an expert on making offers on Foreclosures is vital – they will need to have skill and experience at negotiating with lenders.
- Choose the right property for your FHA 203k renovation project. Your FHA 203k expert Realtor will be able to make all the difference when it comes to selecting the right property and can help you find one that you will get equity in. Remember, the FHA 203k streamline (those for cosmetic repair under $35,000) are going to close faster, cheaper and at a better interest rate than the Full 203K will.
- Select the right FHA 203K Contractor. Your Realtor will have an expert FHA 203k contractor who is licensed and bonded and insured. Without the right contractor working on your project that has the right credentials, your FHA 203k loan won’t close at all!
FHA 203k Mortgage Lenders
Think all FHA 203k lenders are created equal? Of course you don’t. FHA 203k lenders are easy to find: HUD has provided a database where you can search for a good FHA 203k lender in your area.
FHA 203k Mortgage Guidelines
Have questions about the FHA 203k program guidelines? Find out more about FHA 203k guidelines.
FHA 203k Interest Rates
What are FHA 203k mortgage interest rates doing? They move up and down all the time, but see a simple snapshot of what you might generally expect if you were to speak with an FHA 203k lender today. FHA 203k interest rates.
FHA 203k Mortgage: More Information
Still have questions about the FHA 203k mortgage? Be sure to contact one of our FHA 203k mortgage experts, we are happy to answer any questions you have.